RIM will have “Big Recovery” says Ross Healy of Strategic Analysis

This is the time when people love to pile on, says Healy. But, he added: "I have a feeling that everyone who is piling on now is going to be thrown for a big penalty.” The Strategic Analysis’ boss says he thinks Research in Motion will have a big recovery.

Will there be a day when anything but bad news comes out of 295 Phillip Street in Waterloo, Ontario, the headquarters of beleaguered BlackBerry maker Research in Motion? At least one expert with a history of nailing trends in outsize Canadian techs thinks so.

On Thursday, Ross Healy, Chairman & CEO of Toronto-based research firm Strategic Analysis, was on Market Call with host Michael Hainsworth to talk North American large cap stocks.

Healy, who is perhaps best known for predicting the demise of Nortel Networks in the late-nineties, says the same fate does not await RIM. He says RIM is currently in the middle of what Douglas Adams would call “The Long Dark Tea-Time of the Soul”, referring to the 1988 fantasy detective novel. Healy says the time between RIM’s old products and new BlackBerry 10 operating system may feel like an eternity, but the company is still extremely attractive considering a growing subscriber base in Asia and Africa is easing lost market share in North America.

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“This is the time when people love to pile on, says Healy. But, he added: “I have a feeling that everyone who is piling on now is going to be thrown for a big penalty.” The Strategic Analysis’ boss says he thinks RIM will have a big recovery. “Whether it’s a permanent recovery or not I don’t know,” he said, but says the stock is very attractive at current levels, where he is buying.

On June 28th, Research in Motion reported a Q1 in which it lost $518 million, or $.99 cents a share, on revenue of just $2.8 billion, which was a 33% drop from $4.2 billion in the same quarter a year ago. What’s more, the company delayed its much anticipated new operating system, BlackBerry 10, until next year.

Tomorrow morning in Waterloo, RIM will host its Annual General Meeting. Shares of the company on the TSX closed today down 5.1% to $7.80.

About Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

Comments

RIM has strange culture and self distruct political environment.
In RIM if a new hired person figure out major problem and introduce efficient approach, both manager and his buddy group member will proof their wrong approach works. just like someone point out driving a car is right way, pushing a car is wrong way, then both manager and his buddy group member will hate you, and proof that 3 person can also move the car by pushing it. cheating email will be sent to some vice president, saying like: see, the car moving, pushing a car is a natural part of the process, in order to deny new hired contribution of introducing skill of drive a car, they have to deny merit of driving a car.
It is very strange company culture and strange company political environment, it promote stealing and cheating skill. RIM’s management may be a typical instance in MBA course.
This culture deny or steal hardworking team members’ contribution/innovation, generate strange political environment, destroy RIM.